TORONTO, ONTARIO--(Marketwired - June 6, 2013) - Augusta Industries Inc. (TSX VENTURE:AAO) (the "Corporation") is pleased to announce that it has agreed to the issuance of up to $1 million principal amount series "B" 10% convertible senior debentures (the "Debentures") pursuant to a non-brokered private placement.
The Debentures shall have the following features:
-- convertible into units in the capital of the Corporation at a conversion
price of $0.15 per unit;
-- units are comprised of one (1) fully paid and non-assessable common
share and one (1) common share purchase warrant ("Warrant"). Each
Warrant entitles the holder thereof to obtain one (1) common share in
the capital of the Corporation at an exercise price of $0.25 per share
for a period of twenty four (24) months from date of conversion;
-- have a term of 36 months; and
-- annual interest rate of 10% which shall be payable quarterly.The issuance of the Debentures is conditional upon the Corporation receiving the approval of the TSX Venture Exchange.
Proceeds from the private placement will be used for general working capital.
About the Corporation:
Through its wholly owned subsidiaries, Marcon International Inc. ("Marcon") and FOX TEK Canada Inc. ("Fox Tek"), the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.